China has increased its gold reserves to 4000 tonsImage Credit source: gemini
China has taken such a step whose echo is being heard in every major market of the world. China has quietly made an extraordinary increase in its gold reserves. The figures are so huge that it is difficult to believe. While China had about 500 tonnes of gold at the beginning of the year, its reserves have crossed 4000 tonnes in October. This is not just an investment, it is being considered as a well-thought-out strategic move. Experts believe that China is directly challenging the supremacy of the dollar, and with this it has sensed an impending global economic crisis. This one step of China has put the whole world to sleep.
China has raised a ‘mountain’ of gold
This is 3500 tons gold The purchase has not been done in a day. This is part of a very deep and well thought out plan of China. From the beginning of 2025, China’s central bank started purchasing gold continuously without creating any disturbance in the market. This purchase was done in a very strategic manner. Every month, small amounts of gold were purchased, but this process did not stop even for a moment. By the time the world’s major markets could fully understand this pattern, China had built a huge mountain of gold in its coffers.
Interestingly, this purchase took place at a time when gold prices were already skyrocketing in the global markets. Statistics show that prices had already risen by 30 percent. Despite this, China did not care about this rising price. This clearly shows that for him this deal was not just about earning profits, but about ensuring the ‘security’ of the future. It is not just about strengthening our economy. It is also a clear demonstration of its economic strength on the global stage. China is sending a message to the world that it is ready to face any economic storm.
Will the dominance of the dollar end?
This move by China is bound to create panic in the global financial markets. The biggest question has arisen regarding the future of the US dollar. For decades, most of the world’s trade has been conducted in US dollars, giving the US an unmatched power. But this ‘golden’ move of China is a direct attack on this system.
Economists around the world are considering this as a big step towards ‘de-dollarization’ i.e. reducing dependence on the dollar. China clearly wants to sharply reduce the share of dollars in its foreign exchange reserves. There are reports that he is buying this gold by selling his US Bonds. Its effect is also visible immediately. Gold prices, which were already rising, have gone up further rapidly after this huge purchase by China.
Seeing China, the central banks of other countries of the world have also woken up. The recent Russia-Ukraine conflict has taught us how risky it can be to rely completely on foreign exchange reserves, especially the dollar. Therefore, now other countries are also running towards gold instead of dollars for their security.
Is China preparing for a big ‘bang’?
The biggest question is why did China suddenly need so much gold? Is China anticipating some global crisis that the rest of the world is unaware of? History is witness to the fact that gold has always been a ‘safe haven’. Whenever there is a big economic or geopolitical storm in the world, only the shine of gold gives confidence.
This huge reserve of 4000 tonnes of gold will give China unprecedented strength to stand strong in any upcoming crisis. This step is also a clear signal in the direction of making the global economy ‘multipolar’. Meaning, a world that does not revolve only around America and its dollar, but in which other powers like China also have equal status. It is also feared that due to this, ‘Currency Wars’ between different countries may intensify in the future, which may affect all of us.
Overall, this step of China in 2025 is not just to increase gold reserves, but it is an open challenge to change the future economic map. This is both a demonstration of China’s strength and a warning to the world. It is clear that the coming times may be full of turmoil on the economic front. China has made its move, now it remains to be seen how the rest of the world, especially America, responds to this ‘golden’ challenge.